Food safety law: Can authorities suspend a restaurant licence immediately?

Over the past few months, food safety authorities in several states have intensified action against unhygienic practices at food establishments, including hotels and restaurants. Several food outlets have had their licences suspended over alleged hygiene and food-safety violations. The most prominent action has been in Maharashtra, where the Maharashtra Food and Drug Administration (FDA) has suspended the licences of several restaurants, hotels and other food businesses.

 Amid the recent spate of licence suspensions, a key question arises: Can authorities suspend a food licence immediately, or must a food business first be allowed to rectify deficiencies? 

What is the normal process for suspending a food licence?

Section 32 of the Food Safety and Standards Act, 2006, along with Regulation 2.1.8 of the Licensing and Registration of Food Businesses, 2011, lays down the process for suspension or cancellation of a registration certificate.

Under the normal process, the registering authority may suspend a registration after giving the FBO a reasonable opportunity of being heard, if there is reason to believe that it has failed to comply with the conditions mentioned in an Improvement Notice served under Section 32.

A Food Business Operator (FBO) is any individual, organisation or company involved at any stage of the food supply chain, including production, processing, packaging, storage, distribution or sale. Under the Food Safety and Standards Authority of India (FSSAI) and the Food Safety and Standards Act, 2006, every FBO must obtain an FSSAI registration or licence before operating. FBOs are responsible for ensuring that their food meets safety, hygiene and quality standards, maintaining clean premises and using proper product labelling.

The authority must record the reasons for the suspension and furnish a copy to the concerned FBO. It may then direct an inspection of the FBO’s premises within a reasonable period, which must not be less than 14 days from the date of the suspension order.

If, after reviewing the inspection report, the authority finds that the FBO has still failed to rectify the defects or omissions or comply with the conditions of the Improvement Notice, it may cancel the registration after allowing the FBO to show cause, as provided under Section 32(3) of the Act. In other words, the statutory framework is intended to give a food business an opportunity to correct deficiencies before its licence is suspended.

Can authorities suspend a licence immediately?

Yes. The law provides an exception to the normal process. The Designated Officer may suspend a licence forthwith in the interest of public health, for reasons to be recorded in writing. A suspension of the licence does not entitle the FBO to any compensation or refund of fees paid in respect of the registration certificate or its renewal.

Who can suspend or cancel a food licence?

Section 36 of the Food Safety and Standards Act, 2006, provides for the appointment and core functions of the Designated Officer responsible for local food safety administration.

The Designated Officer has the power to issue or cancel licences for FBOs, ban the sale of food that violates the Act or its regulations, and recommend prosecutions for offences punishable with imprisonment. The officer can also sanction or launch prosecutions for offences punishable with fines. The Designated Officer is appointed by the Commissioner of Food Safety, must be at least a Sub-Divisional Officer and is responsible for food safety administration in each district.

Can a food business appeal a licence suspension?

The law provides an appeal mechanism for food businesses affected by regulatory action. Under Section 32 of the Food Safety and Standards Act, 2006, a person aggrieved by an Improvement Notice, refusal to issue a certificate of improvement, or the cancellation, suspension or revocation of a licence may appeal to the Commissioner of Food Safety. The Commissioner's decision on the appeal is final.

An appeal must generally be filed within 15 days from the date on which notice of the decision is served on the person seeking to appeal. In the case of an appeal against an Improvement Notice, the appeal must be filed within 15 days or the period specified in the Improvement Notice, whichever expires earlier.

What happens once the violations are fixed?

The regulations provide that after a period of three months from the date of cancellation, the Food Business Operator may make a fresh application for registration with the concerned authority if all observations made in the Improvement Notice have been complied with.

Recent court proceedings have also addressed what happens when an establishment has already rectified the deficiencies that led to its licence being suspended or cancelled. In Siddharth Agro v State of Maharashtra (2026), the Bombay High Court ruled that the FDA must immediately revoke licence suspension or cancellation orders once an establishment fixes the deficiencies pointed out by the authorities. The court said there was no valid reason to keep a suspension active after a business had fixed the safety or hygiene problems.

Forcing a business to approach the court merely to lift an old suspension wastes time for both the judges and the business, the court said. Keeping a suspension in place after compliance also causes severe financial losses for the owner, workers and supply chain, it added.

What happens if unsafe food causes injury or death?

The Food Safety and Standards Act also provides for compensation when unsafe food causes injury or death to a consumer.

Section 65 states that if any person manufactures, distributes, sells or imports any article of food that causes injury to a consumer or the consumer’s death, the Adjudicating Officer or, as the case may be, the court may direct that person to pay compensation to the victim or the victim’s legal representative.

The compensation shall be:

• Not less than ₹5 lakh in case of death
• Not exceeding ₹3 lakh in case of grievous injury
• Not exceeding ₹1 lakh in all other cases of injury

The compensation must be paid at the earliest and, in no case, later than six months from the date of the incident. In case of death, interim relief must be paid to the next of kin within 30 days of the incident.

The court or Adjudicating Officer can also order publication of the offender’s details and the crime in newspapers at the offender’s expense. Authorities may also cancel licences, order food recalls, or forfeit property and establishments in severe cases involving grievous injury or death.